Real estate auctions are becoming more popular as sellers do there best to find creative means to sell their home. Real estate auctions can be successful, if they are done correctly. This article explains some of the differences between the different real estate auctions.
The Different Types of Real Estate Auctions
By Ken Fong
A real estate auction works pretty much like any other type of auction. It does not matter if the property is owned by the seller, or a government auction of foreclosed property, auctions are an exceptional way for selling and buying property fast, with the prospect of receiving a great deal.
There are typically three forms of auction used in a real estate. They are Absolute Auctions; which is where the property is sold to the highest bidder regardless of the price this is a no reserve auction. Minimum Bid Auctions start at a minimum bid, which is declared before the auction starts. Reserve Auction is where the minimum bid is private the seller sets the minimum bid that he is willing to sell the property for. The auction goes on like there is no minimum, but if the reserve price is not met, there will be no winning bidder.
The ways which these auctions are executed can differ depending on the kind of property, and the way in which the seller desires to auction his property. These include Sealed Bids which is where bids are mailed in to a specified place before the opening of bidding. Bids cannot be changed once the bidding has opened, and the property is given to the highest bidder. Nobody knows what anybody else bid, so you bid the amount of money you are willing to spend to win the property.
Public Auction is the most common form of auction, this is where bidders register to bid and bring the bid deposit to the auction. Bidders bid on the property which is run by an auctioneer once the bidding is over the highest bidder is given the property.
Auction by Mail is where bid deposits are mailed to the appointed office and bidders are able to raise their bids by mail, e-mail, fax, on-line, or in person. The auction lasts a few days, and the high bidder is awarded the property when bidding stops.
On-line Auction is where the bidding is done online and the highest bidder at the end of the auction wins the property.
Ken Fong
Real Estate Articles
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